Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Expect Volatility - More Government Shutdown Idiocy

More brinkmanship from the Party of No We Can’t:
https://amp.cnn.com/cnn/2022/12/12/politics/spending-showdown-divided-washington-analysis/index.html
The government hostage situation will probably be resolved as a majority still exists but until it is resolved I imagine there will be some market volatility.

Comments

  • pig-pizzles for brains. repugnant insurgency party.
  • Don't expecting anything less from that Party. Holding more cash just in case.
  • Already?
    I was expecting this for 2023 Q1-Q3 after the debt-ceiling was hit.
    May be the Congressional payroll should be the first to go when there are budget impasses.
  • +2 @ybb and take their benefits also.
  • I be cool with all 'dat.
  • In an unprecedented move, S&P downgraded long-term federal debt from AAA to AA+
    in 2011 when politicians were squabbling over the debt ceiling.

    It's statement said in part:
    "We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process."

    Deja vu all over again?
  • Look at the other side, or what happened to McGraw Hill that owned S&P then? It self-destructed. It now exists as private McGraw Hill Education and public S&P Global/SPGI.

    FWIW, no other rating agency followed S&P.

    One consequence of this was that no other US financial has been rated better than AA+ on the logic that none could be sounder than the US Government. In fact, only JNJ and MSFT now are 2 AAA rated US companies.
  • edited December 2022
    For all practical purposes, there were no real consequences for federal debt as a result of the S&P downgrade.
    However, it was extremely foolish to engage in political gamesmanship and risk the U.S. debt rating.
Sign In or Register to comment.